The Seventh Trumpet is at once an Intelligence Report
and a Spiritual
Commentary upon the Events and Affairs of our Times.It is intended
to be an ongoing Educational Curriculum based on the subterranean
streams of economic, social, political, spiritual and historical facts,
little known to the general population.

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SCARLET

AND THE

SEVEN-HEADED DRAGON,

Part 6

"Flee out of Babylon and let every man deliver his own
soul; do not be cut off because of her lawlessness. For this is the time
of the Lord’s vengeance; he will render to her recompense.

Babylon has been a GOLDEN CUP in the Lord’s hand, which has made
all the earth drunk with wine; Therefore, the nations rage. Babylon falls
suddenly and is destroyed. Howl for her. Give her balm if she may be healed.

We would have healed Babylon, but she is not healed. Forsake her and let
us go every man to his own country; for her judgement is lifted up to
the skies." - Jer. 51:6-9

ECONOMY FAILING

New York Times
Jobless Rate Rises Sharply, to 4.9%; Bush Vows to Act

By DAVID LEONHARDT

September 8,
2001

"The nation's unemployment rate jumped
sharply in August to 4.9 percent from 4.5 percent in July, the biggest
one-month rise since the spring of 1995, dashing hopes that the bleak
economic climate was starting to improve. The 4.9 percent jobless rate
in August, according to the government's Bureau of Labor Statistics, was
the highest sincemid-1997.

Businesses eliminated more than 100,000 jobs last month, suggesting that
the economy remained at risk of falling into a recession. And companies,
in an effort to halt steep profit declines, made more cuts this summer
in the hours their employees worked.

"The economy is facing bigger threats than we had thought,"
said Jim Glassman, a senior economist at J. P. Morgan Chase. "It's a very
weak picture." ...The job figures prompted a broad sell-off on Wall Street,
and the Standard & Poor's 500-stock index fell to its lowest level
in almost three years.

The Dollar dropped against the Euro, and economists said that the Federal
Reserve was now likely to keep cutting interest rates until signs of a
rebound emerge. ...

...Since early
last summer, factories have cut
more than one million jobs, or 5.4 percent of their payrolls, and fewer
people now work in a manufacturing plant than at any time since 1964.

"The South and the Midwest have been hardest hit by
the manufacturing slump. ...risks remain, chief among them the continued
decline in corporate profits that could cause companies to make even deeper
jobs cuts.

Last month, for example, the Ford Motor Company, in its second major cost-cutting
attempt this year, said it would eliminate 5,000 of its 50,000 jobs.

More job reductions could cause consumers to spend less money and leave
the economy in a more severe slump... ...

"The average workweek stayed at 34.1 hours, its lowest
to-month average since the government began keeping the statistic almost
40 years ago.

"Companies that had been trying to avoid layoffs are doing it anyway,"
Mr. Glassman, the Morgan Chase analyst, said. "And despite the cutting
they've done, they're not getting ahead of the curve." ...the situation
is far different from the previous five years, when the economy, on average,
added 2.8 million jobs a year.

"...In the second quarter, the United States economy
grew at an annual rate of just 0.2 percent, according to the Commerce
Department's most recent estimate. Many people consider a recession to
consist of two consecutive quarters of contraction.

Analysts said it was still too early to tell whether the second and third
quarters of this year would fall into that category once the government
updates its statistics, but yesterday's jobs report increased the chances
of that.

...factories cut another 141,000 jobs,
their biggest reduction since July 1998.

"...Already, virtually every measure of the labor market
has wakened. The average length of unemployment rose to 13.3 weeks, from
12.5 in July. The unemployment rate for teenagers increased to 16.1 percent,
from 14.8 percent in July.

And the unemployment rates for blacks, 9.1 percent; Hispanics, 6.3 percent;
and whites, 4.3 percent, all rose. More people stopped looking for work
last month than in July...

COLLAPSE OF THE STOCK MARKET

April 18, 2001,
10:15 a.m. PT

REDMOND, Wash.--

"Microsoft's stock decline has left many of its employees
facing financial problems related to hefty tax bills incurred when their
stock options were exercised, The New York Times reported.

"Some workers' financial problems may have been exacerbated
by Salomon Smith Barney, a unit of Citigroup, which is identified as Microsoft's
"preferred broker" in the software maker's company documents and which
advised many company workers on how to handle their stock options, the
newspaper said.

"Some Microsoft workers turned their options into stock
and then borrowed against the shares to pay taxes, often on the advice
of Salomon Smith Barney.

The high-risk practice, known as a margin loan, is more often a tool of
speculators aiming to buy additional stock without additional money. As
the stock fell, the workers' shares were sold, leaving them broke.

"This summer, we saw signs of the coming economic recession.
And that tragic day in September hastened the process.

Since September 11, more than 420,000 people have been laid off and initial
jobless claims jumped to more than 520,000. That's the highest level since
July 1992. Without a doubt, the longest expansion in U.S.history is over!

Consumer confidence has tumbled and billions of dollars worth of business
has been lost. And thousands, if not hundreds of thousands more will become
economic losers.

UCLA FORECASTERS PREDICT RECESSION

LOS ANGELES --Economists with the UCLA Anderson Business
Forecast see even more clear indicators of a recession for the nation
in 2001 and project a 90 percent chance that the nation's longest economic
expansion will come to an end no later than the first quarter of 2002.

"The year 2001 is a transition year that will take
the U.S. economy from the Internet Rush of 1996-2000 to a lower level
of sustainable economic growth in 2002," said Edward Leamer, "getting
from here to there will involve some painful adjustments," he warns, and
"monetary medicine" from the Fed won't stop the pain this time…

Economist, Dean Baker, from the Center for Economic
and Policy Research, in his well-documented abstract, Double Bubble, writes;

…there is no plausible scenario in which the
stock market can provide anything close to its historic returns, given
its current price to earnings ratio and plausible projections of future
growth. There is only one way for the stock market to restore the historic
relationship between stock returns and
the returns on other financial assets:there must be a plunge in stock
prices.

…The decline in the stock market will have dramatic
demand and supply-side effects. On the demand side, a decline in stock
prices would mean a loss of wealth of approximately $9 trillion, or more
than $30,000 for every person in the country. Using standard estimates
of the size of the wealth effect, this implies a reduction in annual consumption
of between $270-360 billion a year.

SENATOR RON PAUL’ SPEECH ON FIAT
CURRENCY

"Mr. Speaker, the world's politicians, special interests,
government bureaucrats, and financiers all love fiat money- because they
all benefit from it. But freedom loving, hard working, ethical, and thrifty
individuals suffer.

Fiat money is paper money that gets its value from a government edict
and compulsory legal tender laws. Honest money, something of real value,
like a precious metal, gets its value from the market and through voluntary
exchange.

"The
world today is awash in fiat money like never before. And we face a financial
crisis like never before, conceived many decades before the 9/11 crisis
hit.

"Fiat money works as long as trust in the currency
lasts. But eventually trust is always withdrawn from paper money. Fiat
money evolves out of sound money, which always originates in the market.
But paper money inevitably fails know matter how hard the beneficiaries
try to perpetuate the fraud.

"We
are now witnessing the early stages of the demise of a world-wide financial
system built on the fiction that wealth can come out of printing press
or a computer at our central banks.

"Japan, failing to understand this, has tried for more
than a decade to stimulate its economy and boost its stock market by printing
money and increasing government spending - and it hasn't worked.

"Argentina, even with the hopes placed in its currency
board is nevertheless facing default on its foreign debt and a crisis
in confidence. More bailouts from the IMF and the US dollar may temper
the crisis for a short time, but ultimately it will only hurt the dollar
and US taxpayers.

"We cannot expect to continually bail out others with
expansion of the dollar money supply, as we have with the crises in Turkey,
Argentina, and countries of southeast Asia. This policy has its limits
and confidence in the dollar is the determining factor. Even

though up until now confidence has reigned, encouraged
by our political and economic strength, this era is coming to an end.
Our homeland has been attacked, our enemies are not easily subdued,
our commitments abroad are unsustainable, and our economy is fast slipping
into chaos.

"Printing money is not an answer. Yet that is all that
is offered.

"The clamor for low interest rates by all those who
benefit from fiat money has prompted the Fed to create new money out of
thin air like never before. Driving the federal funds rates down from
6 2 percent to 2 2 percent, a level below the price inflation rate, represents
nothing short of panic- and has done nothing to recharge the economy.

But as one would expect, confidence in the dollar is waning. I'm sure,
due to the crisis, the faith in fiat, and a failure to understand the
business cycle, the Fed will continue with the only thing it knows to
do- credit creation and manipulation of interest rates.

This policy reflects the central bank's complete ignorance as to the cause
of the problem- credit creation and manipulation of interest rates.

"Since the Federal
Reserve first panicked in early January, it has created $830 billion of
fiat money out of thin air.

The country is no richer, the economy is weaker, the stock market has
continued downward, and unemployment has skyrocketed. Returning to deficit
spending, as we already have, will not help us any more than it has helped
Japan, which continues to sink into economic morass.

"Nothing can correct the problems we face if we do
not give up on the foolishness of fiat. Mr. Speaker, a dollar crisis is
quickly approaching. We should prepare ourselves".-
End quotation.

HOW MUCH IS THE ALMIGHTY DOLLAR WORTH?

If we accept the Dollar of 1987 as our base and what
it would have purchased at that time and compare it with the purchasing
power of the Dollar today, it will be observed that it has lost 81% of
it’s purchasing power! So much for the ‘almighty dollar’!!!

More than 50% of Americans have less than $10,000 saved
for retirement, according to the Social Security Adminitration.

Kenneth Gervino, former chairman of the American Economic
Council, says, "Historically, the United States has been a hard money
country. Only since 1913 has the United States operated on a fiat money
system. During this period, paper money has depreciated over 87%.

During the preceding 140 year period,
the hard currency of the United States had actually maintained its value.
Wholesale prices in 1913 were very similar to what they were in 1787"
! ! !

Robert Hemphill, Credit manager
of Federal Reserve Bank in Atlanta relates; "This is a staggering thought.
We are completely dependent on the commercial Banks. Someone has to borrow
every dollar we have in circulation, cash or credit.

If the Banks create ample synthetic money we are prosperous; if not, we
starve. We are absolutely without a permanent money system. When one gets
a complete grasp of the picture, the tragic absurdity of our hopeless
position is almost incredible, but there it is.

It is the most important subject intelligent persons can investigate and
reflect upon. It is so important that our present civilization may collapse
unless it becomes widely understood and the defects remedied very soon."

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There are two Versions of THE SEVENTH
TRUMPET newsletter:

The first is the free version. To subscribe, on line
simply send an e-mail to

Friends, how about a little diversion
to take our minds off Rome burning. How about a little War on Terrorism.
Benjamin Franklin warned us years ago, "They
that can give up essential liberty, to obtain a little temporary safety
deserve neither liberty nor safety."

ANTI-TERROR
BILL SENT TO BUSH

By
JESSE J. HOLLAND, Associated Press Writer

WASHINGTON
(AP)

"Police
are about to get wide-ranging new anti-terrorism powers to search people's
homes and business records secretly and to eavesdrop on telephone and
computer conversations. The Senate on Thursday
sent President Bush a package of anti-terror measures, which the president
says he will sign "so that we can combat terrorism and prevent future
attacks."

"A White House signing ceremony was
scheduled for Friday. The legislation, while somewhat weakened from the
administration's original proposal, expands the FBI's wiretapping and
electronic surveillance authority and imposes stronger penalties for harboring
orfinancing
terrorists. It also expands the number of crimes considered
terrorist acts and increases the punishment for committing them.

"Attorney General John Ashcroft said the Justice Department
will begin using the new powers immediately. "Upon the president's signature,
I will direct investigators and prosecutors to begin immediately seeking
court orders to intercept communications related to an expanded list of
crimes under the legislation," he said.

"Lawmakers, worried
about possible abuse of the new wiretapping and surveillance powers, decided
to place a four-year cap on that part of the legislation.
(Really? editor)

"It gives us the time to investigate whether there
were any outrageous abuses," Sen. Dianne Feinstein, D-Calif., said.

The House and Senate approved Bush's
anti-terrorism package in less than two months, skipping much of the normal
committee process in their haste. Lawmakers say they still came up with
a good bill. "The gestation period has been a few weeks. But it's a heck
of a lot better than to have given birth to a monster, and we didn't do
that," said Senate Judiciary Chairman Patrick Leahy, D-Vt.

Critics disagreed. "It
is still dangerous legislation, and unfortunately there are still too
many weaknesses in the bill that could end up curbing and infringing fundamental
civil rights and liberties," said Ralph Neas,
president of the liberal People For the American Way.

Russ Feingold, D-Wis., was the only
senator to vote against the package. "This
bill does not strike the right balance between empowering law enforcement
and protecting civil liberties," Feingold said.
Utah Sen. Orrin Hatch, the senior Republican on the Judiciary Committee,
retorted: "I don't know anybody in this country who's afraid
of their law enforcement people at this time. They're afraid of terrorism."
???

The new legislation allows nationwide jurisdiction
for search warrants and electronic surveillance devices, including legal
expansion of those devices to e-mail and the Internet.
It also authorizes the use of roving wiretaps, in which officials get
orders that allow them to tap whatever telephone a person uses instead
of one telephone at a time.

Senators also insisted on tacking money-laundering
stipulations into the bill to thwart the flow of money to terrorist groups
and protect the U.S. banking system from illicit money.

The House inserted an expiration date for the new wiretapping
and electronic surveillance powers. Under the bill, Congress has to renew
the anti-terrorism legislation before Dec. 31, 2005, or the eavesdropping
sections expire. Ashcroft and Bush fought strongly against that provision,
but Republican leaders in the House told them the bill

could not muster a majority without it. - The bill
number is H.R. 3162.

Beloved, The Euro was pushed forward ahead of schedule
to find out where the smart Europeans had stashed their hard earned savings.
The effective date for honoring the old currency expired, causing people
all over Europe to bring out their savings from Off-Shore savings accounts,
so they could convert it into Euros. Now, they want to go after Canadian
and U. S. citizen’s savings.

Offshore accounts
face scrutiny Brokers gather details

Financial Post

October 30,
2001

Securities dealers will today begin reviewing their
records to determine how many of their clients have accounts based in
secret offshore locations. Provincial securities regulators are sending
a formal request for the information through the Investment Dealers Association
of Canada.

The inquiries are the first step in a possible crackdown
by securities commissions in British Columbia, Alberta, Ontario and Quebec
on the use of offshore brokerage accounts. The initiative was first reported
this month in the Financial Post. The regulators have also asked each
firm to outline, in detail, how they deal with offshore accounts, and
what steps they take to determine the identities of those who have a financial
interest in those accounts.

Among other questions, regulators are asking securities
dealers: "Does your firm question offshore clients regarding the source
of their funds and under what circumstances would your firm make independent
inquiries regarding the origins of an offshore client's funds?"

(To find out which Off Shore havens are still protecting
their investor’s savings, go to our Member’s Area. J. B.)

Canadian Official
Says Innocent Citizens Will Be Caught In Money Laundering Dragnet, by
Carla Johnson, Investors Offshore.com

29 October 2001

Following the announcement made last week that the
Financial Transactions and Reports Analysis Center of Canada (Fintrac)
will be receiving a $10 million cash injection in order to assist it in
the fight against terrorist money laundering, a top Canadian official
has admitted that innocent Canadian citizens are likely to suffer as a
result of new initiatives.

Jim Peterson, Secretary of State in
charge of international financial institutions, explaining the role of
Fintrac within the regulatory system, told a news conference that evidence
provided by the banks on suspicious transactions would be monitored by
the analysis center, and then handed over to the Solicitor General, who
would order a seizure of assets.

However, Mr Peterson admitted that there were bound
to be mistakes made, and somewhat alarmingly pointed to the fact that
'there's so many people with the same name in this country' as a possible
stumbling point.

He said that the government had not yet decided how innocent Canadians
whose bank accounts were wrongly raided will be compensated for lost interest
and revenues, but added that they would have the option of challenging
the solicitor general over the seizure, and recourse to the Federal Court
if they are unhappy with the outcome of the initial appeal.

National
ID Card System Failing to Attract Supporters

LA
Times, October 24, 2001

Calls
for a national system of identification cards sparked by the Sept. 11
attacks on the World Trade Center and the Pentagon have gained little
traction, failing to win endorsements from the Bush administration or
congressional leaders.

Bush
spokesman Jimmy Orr said the administration wasn't considering a mandatory
ID program, and Feinstein is backing away from reports of her support.

Feinstein said Tuesday that she is preparing legislation
that would call for mandatory IDs with fingerprints and other biometric
data only for non citizens entering the U.S., along with a new database
that would allow immigration authorities to check information from the
CIA as well as state criminal files and other records.

"It's just for people coming into the country,"
Feinstein said. "I think this is where we should start." Some other improvements
in the nation's patchwork identity system are probable, such as the expanded
use of "smart cards" for military and law enforcement personnel.

Senator Feinstein is not put off by the rejection
of a national ID system by the Bush White House, and fellow legislators.
The Senator knows that legislation is somewhat like geology -- it is simply
a matter of time and pressure. For now, it is not politic to refer to
her national ID card as a national ID card, so now it will euphemistically
referred to as a "smart card'" system.

Stewart Baker, a partner with law firm Steptoe &
Johnson, is a former general counsel to the National Security Agency.
He says the FBI has spent the last two years developing

a new surveillance architecture that would
concentrate Internet traffic in several key locations where all packets,
not just e-mail, could be wiretapped. It is now planning to begin implementing
this architecture using the powers it has under existing wiretapping laws.
The FBI has acknowledged a program called Carnivore,
which sniffs e-mail messages, but the new program is more extensive, Baker
says. ISPs, Web hosts, vendors and other firms handling critical Internet
infrastructure should expect the FBI trying to schedule meetings to deliver
the details of their offering, and show the document containing the technical
specifications, Baker said. The new architecture is different from Carnivore
because it would likely ask for certain types of data communications to
be centralized he said.

This kind of packet surveillance now being implemented
by the FBI offers the government the cornerstone it needs in order to
build a towards the possibility of building a truly secure national ID
system.

U.S. ARMY MARCHES INTO SMART-CARD ERA

By Reuters
October 26, 2001, 5:50 a.m. PT

The U.S. military is spearheading a switch to "smart"
identity cards that could open up a new growth market as the world becomes
obsessed with security after last month's hijack attacks.

The Defense Department has ordered chip-based ID cards
for 4.3 million military personnel over the next 18 months to tighten
security on access to buildings, including the Pentagon, and to computer
networks, including access to encrypted e-mail and online transactions.

That may sound like a drop in the ocean for an industry
that shipped some 600 million chip cards last year, mostly bank cards
and mobile phone cards. But ID cards may eventually go to more of the
23 million names on the Defense Department's database, including family
members, retired servicemen and contractors.

The plastic cards look like credit cards, but they
combine a magnetic stripe and a bar code with a fingernail-sized embedded
digital chip. They are well protected from hackers, given that a thousand
hours hacking might at best give access to the information on one card,
rather than a whole network.

U.S. smart card technology company ActivCard, which
provides the software, could see its sales balloon if the market takes
off. It has reported a flood of fresh interest from governments worldwide
since the Sept. 11 attacks on the Pentagon and the World Trade Center.

The U.S. deal also could herald a new source of demand
for card makers such as Gemplus, Oberthur and Schlumberger, whose sales
have been stifled by a yearlong slowdown in growth of mobile phone sales
and the slow takeoff of chip-based bank cards in the United States.

"This is extremely important, not only to us, but to
the whole smart card industry. It's the biggest Java-based smart card
order yet," ActivCard Senior Vice President Tom Arthur told Reuters at
the annual chip card congress, Cartes 2001.

"The level of interest has clearly accelerated since
the attacks," Arthur said. "Before, we had about a dozen interested parties.
Now we have a dozen government projects in the pipeline from Europe, Asia
and the Middle East, a dozen more from U.S. federal agencies and state
departments and a handful of projects from European and Asian militaries."

Beloved, those who seek to destroy the Christian civilization,
which has ruled more or le for the past 2,000 years, do not really have
anything better to put in it’s place. But God, in his wisdom has
his plans. He has placed it in the hearts of rulers to do his biding.
The Rock carved out of the Mountain shall grind them to pieces.

I am reminded of a quote from Richard
A. Falk, "The
existing order is breaking down at a very rapid rate, and the main uncertainty
is whether mankind can exert a positive role in shaping a new world order
or is doomed to await collapse in a passive posture. We believe a new
order will be born no later than early in the next century and that the
death throes of the old and the birth pangs of the new will be a testing
time for the human species." - from an article entitled "Toward a New
World Order: Modest Methods and Drastic Visions," in his book "On
the Creation of a Just World Order" (1975)